As a childless person who didn't marry until 49, I appreciate seeing this profile. :) The living situation sounds like a great setup for her and her mom, where they can enjoy each other's companionship, but each has their own space, and the OP has her own vacation residence. All the best.
I really appreciated this honest accounting (pun intended) of one person's financial reality after the death of a parent. I always assumed I'd inherit nothing from my parents—until my mom died at 68, after years of preparing for her own retirement. It's a privilege, and it's also inextricably wrapped up in grief. Not many people are open about a change that shifts their financial reality overnight, so kudos to this reader for her candor!
Hello! I have a few comments from the OP in response to everyone's questions!
1. To clarify on the paycheck, it is monthly. She kindly went back and looked at her March pay stubs. The total was $4,965 gross, $2,165 net after taxes, medical, dental, HSA, 401K, and Roth deductions.
2. Her mom received her dad’s life insurance and the proceeds from his truck, etc. plus their bank accounts so that was about $250K to her apart from the money the OP received.
3. Her dad’s employer had them working 5am-3:30pm with every other Sunday off, so he would work 130 hours a pay period (13 days every two weeks) rather than 13 days a week. She said she probably misspoke 😊 but I thought it was a colloquialism.
4. Her employer does contribute to her Health Savings Account and doesn’t offer any coverage for retirees. She's planning on using it to fund any additional coverage needed when she retires.
I look forward to these newsletters so much! As a born-and-raised midwesterner, I let out a dreamy sigh when I read vacation home in Michigan. :) Seems like a good arrangement. Wishing her joy, health, & peace.
Interesting. I’m curious as to way she got such a large inheritance from her father while her mother was still alive. Were her parents divorced? The title is a bit misleading as this person’s income is a lot higher than her $62,000 annual salary.
Thanks for this comment, Denise! I'm a bit limited when it comes to headline writing because there's only so much you can fit & you risk things getting awkward & confusing. :)
I know everyone wants to see a mix of incomes, and I'm very cognizant of that when I choose who to feature. I'm also limited by the entries that are submitted. So we just need more people in the average income range to submit & then I can publish! (People with good finances are always more likely to share than those with more complicated money situations.)
Oh, and one thing that got left on the cutting room floor (my bad!), is that her mother receives her father's pension income as well as her own social security. Her parents were not divorced.
Yeah, I'm not sure why the title didn't reflect the actual annual income... would be nice to see someone profiled who is actually living on an *income* of around $60K.
I would love to understand this better too. $60k down to roughly $2k per month — even when adding back in the deductions to medical and investments, still only gets to roughly $3200 per month. Wonder where the rest of her salary is.
She said she contributes $870 a month to her 401(k) and $130 to an HSA, and I am guessing those are pre-tax through her employer, so that would be a significant chunk. Maybe there are other deductions that weren't included here?
I love this series. :) It does sound intimidating to have to manage a deceased parent's money to make sure the surviving parent has enough for the rest of their days - the stakes feel much higher than just managing one's own money. But it sounds like the poster is doing a great job!
Yes, but, you can only carry over so much at the end of the year. So it really depends on your health expenses. For example, my coworker maxes hers out annually but she has type 1 diabetes and a family of 5. I am a family of 2 and relatively healthy (plus we have really good health insurance so our copays are low) and I put $1200 in and I struggle to use it all. There is only so much sunscreen you can stock up on at the end of the year 😂
Linda, That’s an FSA. Re: HSA, There are annual federal limits per family or per single contributor for an HSA. One investment idea is to put money into your HSA, do not pay for medical care or limit what you pay, let that HSA amount grow year over year and invest it, and then use that money in retirement for health related expenses. This money will have been put in tax free, grown tax free, and withdraws for health expenses are tax free. Stellar investment option! I imagine that is why the HSA amount is high.
I use my HSA to cover pretty much everything (doctors appointments co-pay, out of pocket coverage for therapy/accupuncture, medication) so I max out my HSA each year. Being pre-tax makes it a really attractive proposition.
I really appreciate the variety in your profiles, from city couples with children to a single woman approaching middle age. Keep up the strong work!
Thanks, Joy!
i imagine she will also be doing unpaid caregiving as her mom ages, so it's great they already have a setup that works well for them.
coincidentally, today i wrote about how we need to talk more about caring for older adults as they age! https://thedoubleshift.substack.com/p/the-care-crisis-i-want-us-to-talk
As a childless person who didn't marry until 49, I appreciate seeing this profile. :) The living situation sounds like a great setup for her and her mom, where they can enjoy each other's companionship, but each has their own space, and the OP has her own vacation residence. All the best.
I really appreciated this honest accounting (pun intended) of one person's financial reality after the death of a parent. I always assumed I'd inherit nothing from my parents—until my mom died at 68, after years of preparing for her own retirement. It's a privilege, and it's also inextricably wrapped up in grief. Not many people are open about a change that shifts their financial reality overnight, so kudos to this reader for her candor!
I'm so sorry, Maddie! That must be very hard!
Thanks, Lindsey ❤️
My husband and I tell our parents that we don't expect anything from them when they die, so live well now and stick around as long as possible.
1000%! I wish that had happened with my own mom, and I hope it’s the case for your parents and in-laws. 🥰
Hello! I have a few comments from the OP in response to everyone's questions!
1. To clarify on the paycheck, it is monthly. She kindly went back and looked at her March pay stubs. The total was $4,965 gross, $2,165 net after taxes, medical, dental, HSA, 401K, and Roth deductions.
2. Her mom received her dad’s life insurance and the proceeds from his truck, etc. plus their bank accounts so that was about $250K to her apart from the money the OP received.
3. Her dad’s employer had them working 5am-3:30pm with every other Sunday off, so he would work 130 hours a pay period (13 days every two weeks) rather than 13 days a week. She said she probably misspoke 😊 but I thought it was a colloquialism.
4. Her employer does contribute to her Health Savings Account and doesn’t offer any coverage for retirees. She's planning on using it to fund any additional coverage needed when she retires.
I always look forward to these post, this sister seems like she's making things happen and maintaining with her mom. Thank you for sharing
Thanks so much, Stanley! I really enjoyed editing this one!
I look forward to these newsletters so much! As a born-and-raised midwesterner, I let out a dreamy sigh when I read vacation home in Michigan. :) Seems like a good arrangement. Wishing her joy, health, & peace.
Same, same.
This was sweet and wholesome. Seems like she's super content :)
Interesting. I’m curious as to way she got such a large inheritance from her father while her mother was still alive. Were her parents divorced? The title is a bit misleading as this person’s income is a lot higher than her $62,000 annual salary.
Thanks for this comment, Denise! I'm a bit limited when it comes to headline writing because there's only so much you can fit & you risk things getting awkward & confusing. :)
I know everyone wants to see a mix of incomes, and I'm very cognizant of that when I choose who to feature. I'm also limited by the entries that are submitted. So we just need more people in the average income range to submit & then I can publish! (People with good finances are always more likely to share than those with more complicated money situations.)
Oh, and one thing that got left on the cutting room floor (my bad!), is that her mother receives her father's pension income as well as her own social security. Her parents were not divorced.
Yeah, I'm not sure why the title didn't reflect the actual annual income... would be nice to see someone profiled who is actually living on an *income* of around $60K.
I was excited to read this one when I saw her income, then I saw her liquidities.
I so enjoy these. thank you for sharing.
No judgment on living at home. I did that as long as I could and it helped me so much to pay down student loans and even travel a little.
Wonderful details and easy to construct a sustainable, lifetime financial plan if “Ohio” has an expectation about her max age.
Why is her take home pay after taxes from her salary so low?
I would love to understand this better too. $60k down to roughly $2k per month — even when adding back in the deductions to medical and investments, still only gets to roughly $3200 per month. Wonder where the rest of her salary is.
Exactly. This does not add up at all.
She said she contributes $870 a month to her 401(k) and $130 to an HSA, and I am guessing those are pre-tax through her employer, so that would be a significant chunk. Maybe there are other deductions that weren't included here?
That makes sense. Thanks 🙂🙂
Love this series! What does “10 hours a day, 13 days a week” mean? Does that mean 130 hours in 2 weeks?
I think she just means he worked all the time.
Was wondering the same thing. Maybe she meant 13 days in 2 weeks, as in one day off every couple weeks?
I love this series. :) It does sound intimidating to have to manage a deceased parent's money to make sure the surviving parent has enough for the rest of their days - the stakes feel much higher than just managing one's own money. But it sounds like the poster is doing a great job!
What do people typically keep in their HSA? This seems high and now I’m wondering if I should be increasing my contributions.
Maxing out your HSA is what I’ve seen financially savvy people do. Some employers also contribute to HSA accounts so that’s an added bonus.
Yes, but, you can only carry over so much at the end of the year. So it really depends on your health expenses. For example, my coworker maxes hers out annually but she has type 1 diabetes and a family of 5. I am a family of 2 and relatively healthy (plus we have really good health insurance so our copays are low) and I put $1200 in and I struggle to use it all. There is only so much sunscreen you can stock up on at the end of the year 😂
I think you're thinking of an FSA, which is different than an HSA. Dropping this article from CNBC Select that do a good job of explaining the differences: https://www.cnbc.com/select/hsa-vs-fsa-accounts-differences/
Linda, That’s an FSA. Re: HSA, There are annual federal limits per family or per single contributor for an HSA. One investment idea is to put money into your HSA, do not pay for medical care or limit what you pay, let that HSA amount grow year over year and invest it, and then use that money in retirement for health related expenses. This money will have been put in tax free, grown tax free, and withdraws for health expenses are tax free. Stellar investment option! I imagine that is why the HSA amount is high.
Good summary: https://www.morganstanley.com/articles/health-savings-account-retirement-tax-advantages
I use my HSA to cover pretty much everything (doctors appointments co-pay, out of pocket coverage for therapy/accupuncture, medication) so I max out my HSA each year. Being pre-tax makes it a really attractive proposition.